Gullivers takeover in the bag

Jenny Hutson believes Gullivers will help provide the scale needed for S8 to achieve global goals. Picture / Dean Purcell

Australian travel company S8 last night gained control of Gullivers Travel Group, reaching a 55.2 per cent stake just six days after its offer opened.

S8 chairwoman Jenny Hutson said yesterday that the Queensland-based company was seeking 100 per cent of the New Zealand firm to strengthen its competitive position during a "challenging" time for travel businesses.

Hutson, in New Zealand to speak to institutional shareholders, said scale was essential for S8 to realise its ambitions of being a "serious global player".

The merged business would offer competitive holiday packages.

"Gullivers sells 120,000 room nights into Queensland each year - less than 10 per cent of those are sold into S8 properties."

S8 would retain Gullivers' branding here.

"Our job is to deliver synergies in the back office - and that will drive our competitive position in the marketplace and our shareholders' returns," Hutson said.

Gullivers' committee of independent directors yesterday dispatched the target company statement.

Independent directors recommended shareholders accept S8's $2.35-a-share offer, which they said had been shown to be at the top end of the valuation range.

S8 has grown significantly in the past year, including the takeover of Harvey World Travel last September and an alliance with Virgin Holidays in Britain in May that aims to have 300 co-branded Harvey World Travel/Virgin stores operating within two years.

The S8 offer for Gullivers closes on September 10.

S8

* 5000 + Queensland holiday apartments in 48 resorts managed or marketed.

* 2300+ travel retail outlets worldwide, including South Africa, Britain and Australia.

* Also has wholesale travel operations.